A company sells a large number of products that are accessories for a certain class of machine. For the United Kingdom it has nine salesmen, each of whom is responsible for sales in a separate territory.
Estimates of total market potential are $6.0 million and $7.1 million for 20X1 and 20X2 respectively. Data for two individual salesmen and for the company as a whole is shown in the box below.
Required
a) For the average of all nine salesmen and for each of salesmen Abbott and Bartram for 20X2 do the following.
i) Calculate the following.
1) Sales potential
2) Sales penetration percentages
3) Sales potential per account
ii) Calculate eight relevant measures that would help assess the performance of each salesman. These measures should be developed from the data given under the following five headings.
1) Customers
2) Gross margin
3) Calls made
4) Remuneration
5) Expenses
At least one measure should be calculated for each heading.
(b) Assess the performance of Bartram for 20X2 based on a combination of the data in (a) above plus any other data that you consider relevant.
|
Territory area ('000 sq km)
|
Territory 1
7.30
|
Territory 2
15.40
|
Total UK
(including
territories 1 and 2)
230.90
|
|
Number of machines in territory (millions)
|
1.65
|
0.83
|
12.80
|
|
Potential number of accounts
Salesmen
|
699
Abbott
|
423
Bartram
|
5,965
|
|
20X1:
|
|
|
|
|
Sales ($'000)
|
97
|
101
|
1,211
|
|
Customers (number of accounts)
|
412
|
323
|
3,318
|
|
Gross margin ($'000)
|
34
|
39
|
426
|
|
Calls made
|
1,410
|
1,163
|
10,901
|
|
20X2
|
|
|
|
|
Sales ($'000)
|
112
|
123
|
1,460
|
|
Customers (number of accounts)
|
398
|
364
|
3,271
|
|
Gross margin
|
39
|
47
|
498
|
|
Calls made
|
1,450
|
1,220
|
11,030
|
|
Salary ($)
|
7,100
|
6,000
|
60,800
|
|
Commission ($)
|
1,680
|
1,845
|
21,585
|
|
Total remuneration ($)
|
8,780
|
7,845
|
82,385
|
|
Expenses ($)
|
1,940
|
3,200
|
28,060
|